Last month's Crofton real estate prices were a pleasant surprise when MRIS released them this morning.
Even though I've been a Crofton Realtor for over 30 years, and a student of local real estate statistics as long as they've been available, I couldn't be sure what to expect in November 2008. There's so much talk in the media about how terrible the real estate market is, but that seems to be contradicted by the amount of activity in my own office - and I know from experience that "all real estate is local."
Based on MRIS statistics published this morning, any "down" in Crofton home prices is in PERCEPTION, not fact. The truth is that the average sold price was higher last month than any November in the three previous years, as was the median sold price.
What IS down is the number of homes sold in November 2008 - lower than any November in the three previous years. While that's bad news, another thing is down which is good news - The number of homes on the market for sale, Mercifully, the inventory has dropped to the lowest point in three years.
Even looking at selling prices in a year-to-date comparison,neither the average nor median sold prices in November are the lowest of 2008. The rumor that prices have crashed in Crofton are clearly inaccurate!
Yet the average selling price vs. listing price was only 92.1%, for November 2008 compared to 95.2% in 2007. What does this mean to you, the consumer?
In my opinion, it means that consumers are still listing their homes too high for today's market. Remember, a home is worth only what a willing buyer and willing seller agree - a higher listing pice will only slow down the sale.
And that's exactly what's been happening. The pace of home sales has gone up as the percentage of selling vs. listing price has gone down. In November 2008, the days on market went up 56.25%. The moral of this, my friends, is to list your home at the right price in the beginning. It will probably sell much more quickly at a more realistic price.
COMING SOON: On Thursday, December 11, I'll be publishing a chart showing Crofton real estate statistic from 2005-2008 at www.FocusOnCrofton.com. Be sure to stop by and check it out.
Source of Data: MRIS
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Find a Home and learn about Real Estate Market Conditions in Crofton and Anne Arundel County, Maryland. Check out Today's Rates and use the free Mortgage Calculator. These consumer-friendly real estate tools are provided by Margaret Woda for you to use at your own pace.
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Real estate adviser and advocate for home buyers and sellers in Annapolis, Bowie, Crofton, Davidsonville, Gambrills, Odenton, Fort Meade, and other nearby communities in the D.C.-Baltimore area
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glad to hear that your market is looking up Margaret - I feel it too here in Raleigh. Now if the news would just support us and report it as such we'd all be a lot better!
Margaret, this is a nicely done market report for Crofton that tells Crofton MD buyers and sellers exactly what they need to know in today's real estate market.
Great looking market report for your area Margaret. I am impressed because you took the time to point out to your readers exactly what the data means. There are so many market reports I see that just leave the consumer to guess what it all means.
Great report, as always, Margaret. It's good to see both home prices rise AND inventory levels drop. Good info to counter any misconceptions about the Crofton market.
I am glad to read that the market is improving in many areas . Hope this will continue.Good luck.
Thanks, folks! I know it can be boring to read Market Updates for other areas, but I've found it helpful to be able to quote a statistic here or there from other areas. Makes me sound so smart! 'Hope this helps you do the same. By the way, if anyone clicked through to see the 4-yr chart on my other site, I'd be curious to know which you think is better or consumers - that or something like this.
Margaret,
I was wondering about average selling price vs. listing price was only 92.1%, for November 200. Does this include Seller Concessions (up to 6% additional) in some cases? If not, how have you seen sellers react to a 8% lower offer than what they listed it--then asking for concessions too? Thanks for your time.
I sometimes use absorption rates, but when there is a serious or sudden change in the market, I think the data becomes suspect as averaging back over 12 months, creating monthly averages, and then comparing sub-markets into 1-4, 5-6, 7+ ranges becomes an exercise in futility.
Price, condition, utility and demand will always rule.